Changes to Green Book funding rules, increased national funding, and the recent statement on future fiscal devolution, combined with further devolution to Mayoral Combined Authorities, all inject further momentum into regional growth programmes - but the need for private finance to fund growth continues to loom large.
Moving projects into delivery relies on more than national policy or government action alone: early integration of local, regional and industry partners could hold the key to crowding in finance and delivering at pace and scale across the UK.
Recent research by AtkinsRéalis on the appetite of international investors for UK infrastructure painted a bittersweet picture: 90% see the UK as an attractive market, ranked well above European and American markets for investment in the next three years. Importantly, more than three-quarters (79%) are interested in regional growth programmes, with a third already exploring options to invest.
John Rayson, MD for Regional Growth at AtkinsRéalis
However, just 19% would prioritise the UK over other regions. Investors stress the need for greater confidence through clear pipelines, alignment of local and national priorities, and the right resources and capabilities for delivery. Worryingly, nearly two-thirds of investors have walked away from UK projects because the business case didn’t stack up.
The investment case
Investors are drawn to regional growth programmes for a range of reasons, with the opportunity to support regeneration and growth in specific regions and alignment with long-term government strategies as the two most prominent. The proposition of regional growth recognises that infrastructure opportunities are interlinked and standalone projects in themselves do little to create region-wide uplift.
Housing demand is unlocked through effective transport links; transport investment unlocks land value and attracts further commercial activity.
The Government’s overhaul of the Green Book to focus criteria on place-based business cases rather than narrow benefit-cost ratios brings to the fore broader economic, social and productivity gains. Local authorities are now better positioned to support this model with the right tools and mechanisms in place.
Devolution’s frontline delivery vehicles
Mayoral Combined Authorities (MCAs) now hold significant devolved powers across planning, transport, skills and housing, which are the levers required to drive place-based economic transformation.
In addition, the Chancellor’s plans to develop a roadmap for fiscal devolution is a positive move in helping to de-risk and strengthen propositions for investors, but the timeline for revenue-raising powers for MCAs will be critical in regions’ ability to attract private finance to fund and deliver local growth plans.
By setting clear regional priorities, coordinating public-private coalitions, and establishing long-term pipeline delivery, MCAs are well-placed to create investable propositions. However, success will depend on clear alignment between local and national priorities to instil investor confidence, and the ability to convene a broad group of stakeholders and partners early in the programme to create clear pathways for decision-making and delivery.
Liverpool Central Station is at the heart of a £5bn regeneration programme that illustrates what place-based investment can achieve at scale. The scheme will transform an 86-acre gateway into an integrated transport hub and catalyse housing, employment and connectivity across the city region. It is one of four national pilots for the reformed Green Book, testing how multi-departmental appraisal can capture the full economic value of regional infrastructure. AtkinsRéalis has supported Liverpool City Region Combined Authority on the business case and funding strategy, including options for private sector investment alongside public funding.
In parallel, “growth corridors” are fast becoming the framework for accelerated delivery as they reduce fragmentation and present investors with a pipeline rather than a handful of unconnected schemes.
The West Midlands Investment Prospectus 2025 is a prime example. It has identified the region's most investable corridors, sites and programmes across transport, regeneration and innovation and is structured explicitly to simplify and accelerate the path to private capital.
A new approach
In order to unlock regional investment, there are four specific requirements investors apply when assessing regional opportunities: financial clarity, policy stability, robust risk management and integrated delivery.
Meeting those requirements demands a different approach to programme development. Where the traditional model sequences business cases, approvals and funding frameworks one after another with the potential to create delays which investors see as deal-breakers, an integrated approach brings finance, delivery and technical partners in from the outset.
The result is faster approvals, stronger business cases and risk profiles that institutional capital can actually work with.
The role of integrator is central in helping authorities structure investable corridor pipelines and embed the controls needed to meet investor standards. Integration across strategy, engineering, commercial modelling, assurance and delivery is increasingly making the difference between a region that wins investment and one that lags behind.
If we get those conditions right, private investment will no longer be the missing piece in the regional growth puzzle; it will be the accelerant, but the time to act is now.